A $750,000 Bond Was Retired at 103 When the Carrying

question 259

Multiple Choice

A $750,000 bond was retired at 103 when the carrying value of the bond was $777,500. The entry to record the retirement would include a

• A) gain on bond redemption of $22,500.
• B) loss on bond redemption of $5,000.
• C) loss on bond redemption of $22,500.
• D) gain on bond redemption of $5,000.

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Definitions:

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, typically seen as an indicator of the economic health of a country.

Japanese Yen

The official currency of Japan, represented symbolically as ¥ and known as one of the major currencies traded in the world.

South Korean Won

The official currency of South Korea, symbolized as KRW.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by very low unemployment.